Supplier Selection, Approval & Evaluation Procedure
Build a more consistent supplier-control process with a downloadable procedure from Texas Quality Assurance. This document explains supplier selection and evaluation, initial approval, purchasing controls, performance monitoring, reevaluation, and incoming verification.
Strengthen Your Supplier Approval Process
Purchased materials, components, services, and outsourced processes can directly affect product quality and customer satisfaction. Your organization needs a defined method for determining whether suppliers can meet applicable requirements.
This procedure provides a starting point for supplier selection and evaluation based on the products or services provided and their potential effect on quality.
What Does the Procedure Cover?
The document addresses:
- Supplier selection criteria
- Critical and noncritical purchases
- Direct-material suppliers
- Special-process suppliers
- Initial approval requirements
- Conditional supplier approval
- Supplier monitoring and reevaluation
- Outsourced processes
- Purchasing-document requirements
- Receiving inspection and verification
- Material identification and traceability
- Approved Supplier List controls
It also defines responsibilities for quality, purchasing, department leadership, receiving, inspection, and employees who identify supplier concerns.
Match Supplier Controls to the Risk
Not every supplier requires the same type or level of control. The approval process should consider how the supplied product, service, component, or outsourced activity could affect product conformity.
Evidence used to support supplier selection and evaluation may include:
- A completed supplier approval form
- Quality management system certification
- An on-site or remote supplier audit
- A documented technical review
- First-article or sample inspection
- Previous quality and delivery performance
- Customer-required supplier status
- Industry qualifications or licenses
Organizations remain responsible for ensuring that outsourced products and activities meet specified requirements.
Control Purchasing Information
Purchase orders should clearly communicate what the supplier must provide. Depending on the purchase, this may include:
- Product or service description
- Quantity, type, grade, or classification
- Current drawings and specifications
- Inspection and testing requirements
- Material or process certifications
- Packaging and preservation requirements
- Traceability requirements
The procedure also explains how incoming materials should be identified, checked for damage, verified against purchasing information, and controlled when a problem is found.
Monitor and Reevaluate Suppliers
Initial approval does not guarantee continued performance. Approved suppliers should be monitored for quality, delivery, responsiveness, nonconformities, and corrective-action performance.
Supplier reevaluation may be needed after:
- A significant nonconformity
- Continued or repeated problems
- A long period without use
- A change in certification or qualification
- A change in products, services, location, or ownership
- Expansion of the approved scope
Records supporting supplier selection and evaluation should be maintained with the supplier file. Approval status, authorized scope, conditions, and reevaluation frequency should also be recorded on the Approved Supplier List.
Customize the Procedure Before Use
This document should be reviewed and tailored before being added to your management system. Update company names, position titles, form numbers, software references, approval authorities, supplier categories, and record locations to match your organization.
Confirm that the finished procedure agrees with your actual purchasing, receiving, inspection, and supplier-management practices.